BFS137

12 Dec, 2014
Weekly
th

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BFS Roundup @ FLIP

The week
that
was.
The
week
that
was.
RBI doubles limit of prepaid instruments to Rs
1 lakh

Bajaj Finserv Ltd.

In a bid to boost the growth of the industry, the RBI

has relaxed the norms for prepaid instruments
(PPIs). RBI has now allowed PPIs to issue cards
with balance of up to Rs 1 lakh. Earlier, the limit
was Rs 50,000.
Prepaid payment instruments are those which
facilitate purchase of goods and services against the
value stored on such instruments. The value stored
on such instruments
represents the value paid for
`
by the holder, by cash, by debit or by credit card to
a bank account.
Now, banks can also issue rupee denominated cards
to foreign travelers and to NRIs by overseas
branches of banks in India directly or by cobranding
with the exchange houses/money transmitters.
FLIPs View: Well, I guess, with the purchasing
power of the middle class groing, INR 50,000 is too
small an amount. Rupee denominated cards for
NRIs is a good step, and will serve them better.
--------------------------------------------------------

Bajaj Finserv Limited is the holding company for the

financial services businesses of the Bajaj Group.
It was formed in April 2007 as a result of its
demerger from Bajaj Auto Limited to further the
Groups interests in financial services. This
demerger enabled Bajaj Finserv to independently
run the core businesses of Lending, Insurance
and Wealth Advisory.

RBI issues norms for trading platform for

MSME receivables
To help Micro, Small and Medium Enterprises
(MSMEs), the RBI has permitted setting up of an
exchange-based trading platform to facilitate
financing of bills raised by such small entities to
corporate and other buyers, including government
departments and PSUs.
Trade Receivables Discounting System (TReDS) will
facilitate financing of invoices/bills of MSMEs drawn
on corporate and other buyers, including
government departments and PSUs by way of
discounting.
It would discount invoices so that final payment of
the bill to the MSME is made by buyer on a due
date.
MSME sellers, corporate and other buyers, including
the government departments and PSUs, and
financiers (both banks and NBFCs) will be direct
participants in the TReDS
FLIPs View: Educating the MSMEs is important
before taking measures like this. Given the family
business structures,these platforms will barely be
used by them.

Click here to know more

SAIL's Rs 1,700-cr disinvestment successful

5% stake sale in Steel Authority of India (SAIL) by
the government, the first leg of this financial years
disinvestment programme, received an encouraging
response from investors.
The Rs 1,700-crore offer for sale (OFS) was
subscribed more than two times, while the portion
reserved for retail investors those investing up to
Rs. 2 lakh was subscribed nearly three times.
The government has set a record Rs. 58,425-crore
gross disinvestment target for this financial year to
help bridge its fiscal deficit.
FLIPs View: Given the softness in commodity
prices, the govt. was lucky that this OFS sailed
through. I think the FII response was lukewarm,and
as usual the domestic institutions came to the
rescue.

BFS Roundup @ FLIP

RBI eases rules for white label ATMs
The RBI has allowed operators of white label Automated Teller Machines (ATMs) to accept international
credit, debit and prepaid cards. It has also eased rules for cash supply tie-ups at these.
WLA operators will now have the freedom to tie-up with other commercial banks for cash supply at their
ATMs. Earlier, operators had to link only with sponsor banks for cash supply.
Operators can enter into service agreements with the supplier bank for adequate supply of genuine and
good quality notes.
FLIPs View: This will help increasing the network of ATMs,especially in the rural areas,with tie-ups with
nat banks.

Did You Know?

Do inter-bank fund transfers at ATMs!

Did you know that an inter-bank fund transfer can be done through an
ATM?
Union Bank of India, Canara Bank, Andhra Bank, Saraswat Cooperative Bank and YES Bank have come together to allow inter-bank
fund transfers through debit cards.
How does it work?
For this card-to-card transfer, a customer has to go to the ATM and:
1)

Punch in the 16 digit debit card number of the person to

whom he or she wishes to transfer money and,

2)

The amount you want to transfer.

The customers account gets debited, and the other persons account
linked to the card gets credited. This is an instant fund transfer.
Initially, the amount allowed to be transferred is a maximum Rs 5,000
a day and Rs. 25,000 a month.
Initiatives like these are expected to reduce the branch transactions,
thereby bringing in cost efficiencies to the participating banks.

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Term of the Week
SIM-Swap Fraud

If you are using mobile banking, there is a new threat you need to know about.
SIM-Swap frauds are rapidly increasing throughout the world.
What is a SIM-Swap fraud?
SIM-Swap fraud is a technique whereby a fraudster, clones your SIM to use the same to steal money from
your account via mobile banking.
How does it work?
1)
2)
3)
4)

A fraudster obtains your bank account details and registers your mobile phone number through
phishing or malware.
He approaches your mobile service provider with your fake identity proof and, claiming loss of
handset or SIM damage, seeks a duplicate SIM card.
The original SIM is deactivated and a new one is issued to the fraudster.
He then initiates financial transactions from your bank account, details of which he had earlier
stolen, and receives payment confirmation requests on the duplicate SIM.

Since the original SIM has been deactivated, you remain unaware about the fraudulent transactions he
makes.
Bankers are now advising customers to enquire with their mobile operators if they do not have network
connectivity and are not receiving calls or text messages for unusually long periods.
So, you better be cautious!

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